US venue operator BATS Global Markets has increased its risk management provisions by extending member-operated tools across its equities and options venues.
All members will be able to set order restrictions, maximum per-order limits, order cut offs and pre-set kill switches – tools previously only available to sponsored members.
The port-level risk management tools can be viewed and customised through a web-interface for the BATS BZX Exchange, BYX Exchange and BATS Options venues.
BATS Global Markets president and CEO Joe Ratterman said risk checks from members and venues were crucial during the life of an order to ensure markets remain resilient.
“We are confident that these risk controls and kill switch functionality will go along way to responding to customer demand for exchange specific risk mitigation,” Ratterman said.
“We also remain engaged with the industry in the US and Europe on the potential development of market-wide risk controls that could further improve the markets safe functioning as well as increase investor confidence in our markets,” he said.
In October, BATS Global Markets reached a record 13% market share of US equity trading volume – the highest in the company’s seven-year history.
BATS BZX Exchange, the larger of its two venues, reached 10.84% of market share for October, with US$427.5 billion traded, building on a strong performance in September of 10.31% market share and US$378.9 billion traded.